CLA-2 CO:R:C:G 082747 PR
TARIFF NO: (no tariff number used)
Miss Cecilia Khoo
Embassy of Singapore
1824 R Street, N.W.
Washington, D.C. 20009-1691
RE: The country of origin of jeans assembled in Singapore
Dear Miss Khoo:
This is in reply to your of August 30, 1988, on behalf of
the Singapore Trade Development Board, concerning the country
of origin of cotton jeans which are subjected to certain
processing in Singapore.
FACTS:
Three factual situations were presented. In the first,
fabric is imported into Singapore where it is cut into garment
parts. The cut portions are sent abroad for sewing the front
and rear panels which are returned to Singapore for final
assembly and finishing. In the second situation, fabric is
cut in another country and the cut pieces are sent to
Singapore for assembly and finishing. In the third situation,
front and rear panels are imported into Singapore where the
jeans are completed.
Samples of the jeans in various stages of production were
submitted but were lost in transit from our New York office to
this headquarters. Cost and time breakdowns furnished for the
first described situation clearly indicate that the bulk of
the work and expense incurred in the manufacture of the jeans
are attributable to the operations performed in Singapore.
ISSUE:
The issue presented is whether the operations performed in
Singapore are sufficient in each case to cause the imported
merchandise to be considered to be products of Singapore for
textile restraint purposes.
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LAW AND ANALYSIS:
Section 12.130(b), Customs Regulations, provides that
where a textile product is processed in more than one country
or territory, it shall be a product of that country or
territory where it last underwent a substantial
transformation. A textile product will be considered to have
undergone a substantial transformation if it has been
transformed by means of substantial manufacturing or
processing operations into a new and different article of
commerce.
In addition, Section 12.130(d), Customs Regulations,
provides that a new and different article of commerce will
usually result from manufacturing or processing operations if
there is a change in (1) commercial identity, (2) fundamental
character, or (3) commercial use. That provision also states
that in determining whether merchandise has been subjected to
substantial manufacturing or processing operations, we will
consider the physical change in the material or article, the
time involved, the complexity of the operations, the level or
degree of skill and/or technology involved, and the value
added to the article in each country or territory. Any one or
a combination of these factors may be determinative and other
factors may also be considered. However, generally, the
cutting of garment parts from unmarked fabric will result in a
substantial transformation of the fabric.
Since we no longer have the submitted samples and we have
been advised that there is a degree of urgency involved, for
the purposes of this ruling we will assume that the jeans in
question are the usual denim-type nontailored pants and that
their assembly merely requires a simple joining of their
various parts together by machine stitching.
Under the first situation described above, where the
fabrics are cut and the garment parts partially assembled in
Singapore after an intervening assembly in a second country,
it seems clear that no substantial transformation occurred
after the cutting of the garment parts. Therefore, Singapore
is the country of origin of those jeans.
In the second situation described above, the garment parts
are cut in another country and the jeans are completely
assembled in Singapore. In our view, for textile restraint
purposes, the assembly of jeans does not constitute a
substantial manufacturing or processing operation.
Accordingly, in this situation, the jeans would not be
considered a product of Singapore.
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In the third situation, the front and rear panels are cut
and sewn in another country and the garments are finished in
Singapore. Without further information, we are unable to
determine the country of origin of this merchandise.
HOLDING:
Under the first situation, Singapore is the country of
origin. Under the second set of facts, Singapore would not be
the country of origin; and there is insufficient information
to determine the country of origin under the third set of
facts.
Sincerely,
John Durant, Director
Commercial Rulings Division